DELIVERY DUTY PAID (DDP)
“Delivery Duty Paid” (DDP) term describes a situation where the seller fulfills their delivery obligation by making the goods available at a specified location in the importing country. Here, the seller assumes all risks and costs, including customs duties, taxes, and other payments, until the goods are delivered, including the customs clearance. While the EXW term represents the minimum responsibility for the seller, the DDP term, conversely, includes the maximum obligation.
If the seller cannot obtain an import license directly or indirectly, this term should not be used.
If the parties wish for the buyer to handle the customs clearance and pay the customs duties, the DDU term should be used instead.
If the parties wish to exclude certain payments (such as Value Added Tax) from the seller’s obligations during the import process, this can be clarified with the following additional words: “Delivery Duty Paid, excluding VAT (destination…).”
This term can be used regardless of the type of transportation.
A. SELLER’S OBLIGATIONS
- A1: Provision of Goods as per Contract
Provide the goods and invoice or an equivalent electronic message according to the sales contract, along with any other documents required by the contract. - A2: Licenses, Authorizations, and Formalities
Obtain any necessary export and import licenses, as well as other official authorization documents at their own risk and expense. Complete all mandatory customs procedures for both export and import of the goods, and, if necessary, arrange for the goods’ transit through another country. - A3: Transport and Insurance Contract
a) Transport Contract
Contract the transportation of the goods to the agreed port at their own cost. If no specific place is agreed upon or such a place is not defined by customary practices, the seller can determine the location within the agreed destination port at their discretion.
b) Insurance Contract
No obligations. - A4: Delivery of Goods
Deliver the goods to the buyer’s destination or to the first carrier, as per A3. - A5: Transfer of Risk
Assume all risks of loss or damage to the goods until the goods are delivered as per A4. - A6: Cost Sharing
In addition to costs from A3, cover all expenses related to the goods until delivery, including export and import duties, taxes, fees, and any other related costs, including if the goods are transiting through another country before delivery. - A7: Notification to the Buyer
Notify the buyer with sufficient information about the dispatch and allow them to make the necessary preparations for receiving the goods. - A8: Proof of Delivery, Transport Document or Equivalent Electronic Message
Provide the necessary delivery order and/or transport document (e.g., negotiable bill of lading, non-negotiable sea/river/airway bill, railway or road consignment note, or multimodal transport document) at the seller’s expense.
If the seller and buyer have agreed on electronic communication, an equivalent EDI message may replace the document. - A9: Control, Packaging, and Marking
Cover the costs of any required inspections (e.g., quality control, measurement, weighing, counting), and ensure the goods are properly packaged and marked for delivery. - A10: Other Obligations
Cover any expenses related to obtaining the documents or electronic messages as mentioned in B10, and reimburse the buyer for any expenses related to helping the seller. Provide any required information for insurance procedures.
B. BUYER’S OBLIGATIONS
B10: Other Obligations
Assist the seller in obtaining necessary documents or electronic messages in the importing country, at their own expense.
B1: Payment for Goods
Pay for the goods as specified in the sales contract.
B2: Licenses, Authorizations, and Formalities
Assist the seller, at the buyer’s own risk and expense, in obtaining the necessary import licenses or official documents required for the importation of the goods.
B3: Transport Contract
No obligations.
B4: Receipt of Goods
Accept the goods once they have been delivered as per A4.
B5: Transfer of Risk
Assume the risk of loss or damage to the goods once they have been delivered as per A4.
If the buyer fails to notify the seller as per B7, they assume all risks related to the goods after the agreed delivery date or period.
B6: Cost Sharing
Once the goods have been delivered as per A4, the buyer is responsible for all costs related to the goods. If the buyer does not make the required announcement as per B7, they are responsible for any additional costs arising from this.
B7: Notification to the Seller
Notify the seller of the delivery day and/or destination if they have the right to determine these.
B8: Proof of Delivery, Transport Document or Equivalent Electronic Message
Accept the delivery order or transport document as per A8.
B9: Inspection of Goods
Cover the costs of any pre-shipment inspection unless otherwise agreed, or if required by the authorities in the exporting country.